Wall Street Banks Summoned by Regulators Over Hwang’s Blowup
- SEC and Finra said to hold meetings with prime brokers
- Washington races to assess any fallout from firm’s implosion
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Wall Street banks grappling with the implosion of Bill Hwang’s investment firm spent Monday briefing U.S. regulators as Washington starts to dig into one of the biggest fund blowups in years.
The Securities and Exchange Commission summoned the banks for hasty meetings on what triggered the forced sale of more than $20 billion of stocks linked to Hwang’s Archegos Capital Management, said people with knowledge of the matter who asked not to be named in discussing private conversations. The calls also involved the Financial Industry Regulatory Authority, with officials quizzing brokerages about any impacts on their operations, potential credit risks and other threats, said one of the people.